Smallest property price rise in 2019
Smallest property price rise in 2019

The property market is still booming in Portugal and property prices continue their upward trend, albeit at a slower pace. In the third quarter of 2019, properties were 2.5% more expensive compared to the previous quarter standing at 1,981 euros per square meter, according to the idealista price index. This is a 15% increase year on year. The price increase is decreasing as the first two quarters of the year saw increases in the chain of 3.3% and 4.5%, respectively.

Regions

All regions in the country experienced a quarterly increase in prices, except Atlentejo, which fell by 1%. Highlights include the Autonomous Region of the Azores, where prices rose by 4.1%. It is followed by the North (2.7%), the Metropolitan Area of Lisbon (2.7%), the Autonomous Region of Madeira (1.8%), Algarve (1.4%) and Centre (1%)

The Lisbon Metropolitan Area, with 2,883 euros per m2, is still the most expensive region to buy a property, followed by the Algarve (2,183 euros per m2), the North (1,613 euros per m2) and the Autonomous Region of Madeira (1,567 euros per m2). 

Opposite the table is the Autonomous Region of the Azores, where buying a property costs "only" 869 euros per m2. The podium of the cheapest regions is completed by the Centre and the Alentejo (1,031 euros per m2 in both cases).

Districts

In a district analysis, the idealistia index concludes that prices increased in 21 of the 24 analyzed, with the islands of Madeira and the Azores, and the greatest increases occurred in São Miguel (6.6%), Portalegre (4.7%), Vila Real (4.4%), Setúbal (4.3%), Bragança and Beja (4% in both districts). In the case of Coimbra, the increase was 3.3%. 

On the other hand, they fell in Terceira Island (-3.9%), Viseu (-1.5%) and Leiria (-1.3%).

The ranking of the most expensive districts continues to be led by Lisbon (3,223 euros per m2), followed by Faro (2,183 euros per m2) and Porto (1,869 euros per m2). The cheapest prices are in Guarda (645 euros per m2), Castelo Branco (689 euros per m2), Bragança (729 euros per m2) and Faial Island (743 euros per m2)

District/city capitals

Prices rose in 18 district capitals, with Ponta Delgada (9.1%) topping the list. It is followed by Aveiro (4.9%), Setúbal (4.5%) and Bragança (4.4%). In Lisbon and Porto, the increase was 1.2%.

Where did prices fall the most? In Guarda (10.1%), Vila Real (-8.2%) and Viseu (0.5%), in that order. 

Lisbon is still the most expensive city to buy properties: 4,571 euros per m2. Porto (2,750 euros per m2) and Faro (1,857 euros per m2) rank second and third, respectively. The cheapest cities are Guarda (685 euros per m2), Castelo Branco (692 euros per m2) and Bragança (771 euros per m2).

The idealista property price index

Starting with the report for the first quarter of 2019, we’ve updated the methodology we use to create our reports at idealista. Thanks to the new incorporation of idealista/data, new formulas have been included that make the analysis of price developments even more robust, especially in small areas. To avoid getting spikes in our data series, all the data since 2007 have been recalculated using the new methodology.

On the recommendation of the idealista/data statistical team, we updated the formula to find the average price with greater certainty: as well as getting rid of non-representative property listings and those with wildly different prices from the market average, we calculated the median value instead of the mean value. This change further refines our price reports to reflect market realities and standardises our methodology with those applied in neighbouring countries to obtain real estate data.

From now on, we are including the typology of single-family houses and discarding any type of property that has been in our database for a long time without having any user interaction. The report continues to be based on asking prices of properties published on idealista.